BILL NUMBER: SB 1636	CHAPTERED  07/24/00

	CHAPTER   197
	FILED WITH SECRETARY OF STATE   JULY 24, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE ASSEMBLY   JULY 6, 2000
	PASSED THE SENATE   APRIL 13, 2000

INTRODUCED BY   Senator Poochigian

                        FEBRUARY 22, 2000

   An act to amend Sections 125.9 and 2099.5 of, and to repeal
Section 2454 of, the Business and Professions Code, and to amend
Section 13401 of the Corporations Code, relating to osteopathic
physicians and surgeons.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1636, Poochigian.  Osteopathic physicians and surgeons:
licensing: regulation.
   (1) Existing law provides for the licensing and regulation of
osteopathic physicians and surgeons by the Osteopathic Medical Board
of California.  Existing law, except as specified, permits a board,
bureau, or commission within the Department of Consumer Affairs to
issue to a licensee a citation, as specified, for violating the
applicable licensing act or any regulation adopted pursuant thereto.

   This bill would permit the Osteopathic Medical Board of California
to issue those citations.
   (2) Existing law requires the Osteopathic Medical Board of
California to require a person applying for an osteopathic physician'
s and surgeon's certificate to take a written examination, as
specified, that is either prepared by the National Board of
Osteopathic Examiners or by the Osteopathic Medical Board of
California.
   This bill would instead require the Osteopathic Medical Board of
California to either prepare or select the written examination to be
given.
   (3) Existing law, the Moscone-Knox Professional Corporation Act,
requires osteopathic physicians and surgeons that form a medical
corporation to obtain a certificate of registration from the
Osteopathic Medical Board of California in order for the medical
corporation to render professional services.
   This bill would repeal the requirement to obtain a certificate of
registration from the Osteopathic Medical Board of California.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 125.9 of the Business and Professions Code is
amended to read:
   125.9.  (a) Except with respect to persons regulated under Chapter
8 (commencing with Section 6850), Chapter 11 (commencing with
Section 7500), Chapter 11.5 (commencing with Section 7512), and
Chapter 11.6 (commencing with Section 7590) of Division 3, or a
person holding a license specified in paragraph (1), (6), or (7) of
subdivision (b) of Section 9941, any board, bureau, or commission
within the department, and the Osteopathic Medical Board of
California, may establish, by regulation, a system for the issuance
to a licensee of a citation which may contain an order of abatement
or an order to pay an administrative fine assessed by the board,
bureau, or commission where the licensee is in violation of the
applicable licensing act or any regulation adopted pursuant thereto.

   (b) The system shall contain the following provisions:
   (1) Citations shall be in writing and shall describe with
particularity the nature of the violation, including specific
reference to the provision of law determined to have been violated.
   (2) Whenever appropriate, the citation shall contain an order of
abatement fixing a reasonable time for abatement of the violation.
   (3) In no event shall the administrative fine assessed by the
board, bureau, or commission exceed two thousand five hundred dollars
($2,500) for each inspection or each investigation made with respect
to the violation, or two thousand five hundred dollars ($2,500) for
each violation or count if the violation involves fraudulent billing
submitted to an insurance company, the Medi-Cal program, or Medicare.
  In assessing a fine, the board, bureau, or commission shall give
due consideration to the appropriateness of the amount of the fine
with respect to factors such as the gravity of the violation, the
good faith of the licensee, and the history of previous violations.
   (4) A citation or fine assessment issued pursuant to a citation
shall inform the licensee that if he or she desires a hearing to
contest the finding of a violation, that hearing shall be requested
by written notice to the board, bureau, or commission within 30 days
of the date of issuance of the citation or assessment.  If a hearing
is not requested pursuant to this section, payment of any fine shall
not constitute an admission of the violation charged.  Hearings shall
be held pursuant to Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code.
   (5) Failure of a licensee to pay a fine within 30 days of the date
of assessment, unless the citation is being appealed, may result in
disciplinary action being taken by the board, bureau, or commission.
Where a citation is not contested and a fine is not paid, the full
amount of the assessed fine shall be added to the fee for renewal of
the license.  A license shall not be renewed without payment of the
renewal fee and fine.
   (c) The system may contain the following provisions:
   (1) A citation may be issued without the assessment of an
administrative fine.
   (2) Assessment of administrative fines may be limited to only
particular violations of the applicable licensing act.
   (d) Notwithstanding any other provision of law, if a fine is paid
to satisfy an assessment based on the finding of a violation, payment
of the fine shall be represented as satisfactory resolution of the
matter for purposes of public disclosure.
   (e) Administrative fines collected pursuant to this section shall
be deposited in the special fund of the particular board, bureau, or
commission.
  SEC. 2.  Section 2099.5 of the Business and Professions Code is
amended to read:
   2099.5.  Notwithstanding any other provision of law, an
originating license for an osteopathic physician's and surgeon's
certificate issued by the Osteopathic Medical Board of California
shall require the following:
   (a) A written examination, that is either prepared or selected by
the Osteopathic Medical Board of California.  The written examination
shall include osteopathic principles and practices and all
applicable provisions of Article 4 (commencing with Section 2080).
An applicant shall successfully complete the written examination, as
determined by the board.
   (b) An oral, clinical, and practical examination administered by
the board which the applicant shall successfully complete, as
determined by the board.
  SEC. 3.  Section 2454 of the Business and Professions Code is
repealed.
  SEC. 4.  Section 13401 of the Corporations Code is amended to read:

   13401.  As used in this part:
   (a) "Professional services" means any type of professional
services that may be lawfully rendered only pursuant to a license,
certification, or registration authorized by the Business and
Professions Code, the Chiropractic Act, or the Osteopathic Act.
   (b) "Professional corporation" means a corporation organized under
the General Corporation Law or pursuant to subdivision (b) of
Section 13406 that is engaged in rendering professional services in a
single profession, except as otherwise authorized in Section
13401.5, pursuant to a certificate of registration issued by the
governmental agency regulating the profession as herein provided and
that in its practice or business designates itself as a professional
or other corporation as may be required by statute.  However, any
professional corporation or foreign professional corporation
rendering professional services by persons duly licensed by the
Medical Board of California or any examining committee under the
jurisdiction of the board, the Osteopathic Medical Board of
California, the Board of Dental Examiners of California, the
California State Board of Pharmacy, the Veterinary Medical Board, the
California Board of Architectural Examiners, the Court Reporters
Board of California, the Board of Behavioral Sciences, or the Board
of Registered Nursing shall not be required to obtain a certificate
of registration in order to render those professional services.
   (c) "Foreign professional corporation" means a corporation
organized under the laws of a state of the United States other than
this state that is engaged in a profession of a type for which there
is authorization in the Business and Professions Code for the
performance of professional services by a foreign professional
corporation.
   (d) "Licensed person" means any natural person who is duly
licensed under the provisions of the Business and Professions Code,
the Chiropractic Act, or the Osteopathic Act to render the same
professional services as are or will be rendered by the professional
corporation or foreign professional corporation of which he or she is
or intends to become, an officer, director, shareholder, or
employee.
   (e) "Disqualified person" means a licensed person who for any
reason becomes legally disqualified (temporarily or permanently) to
render the professional services that the particular professional
corporation or foreign professional corporation of which he or she is
an officer, director, shareholder, or employee is or was rendering.
